For the week ended June 21, inflation rate climbed up to 11.63 percent, as against 11.42% during the last week.

The inflation rate is presently at the highest since May 6, 1995, when it was 11.11%.

Fueled by increasing food and commodity prices, this will be the 19th straight week that inflation rate has been rising above 5.5%, RBI’s target by the end of the fiscal year in March 2009.

The economic growth rate of India may moderate to 8% during the current (2008-09) fiscal year.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the 13-year high inflation rate of 11.42 percent may result into a little lower growth rate but if necessary steps to control inflation are taken, the growth objective of 9% will not be difficult to achieve.

On the other hand the central bank expects the economy to clock a 8-8.5 percent growth in 2008/09.

Planning Commission deputy chairman Montek Singh Ahluwalia said that India is not the only country to be affected by the inflation. All countries are facing economic problems due inflation. He emphasized that world is in middle of a dramatic change in the world price distribution. Hence Indians should get used to the high energy prices.

Sofia - A military munitions depot caught fire east of the Bulgarian capital Sofia, causing several explosions but no injuries Thursday, civil defence authorities said Thursday.

Minister for Civil Defence, Emel Etem, said there was not danger to the population and the situation was "under control."

However, the Sofia international airport, which is also located east of the city, was closed down for safety reasons. Planes arriving from abroad were redirected to Plovdiv,
150 kilometres to the east.

Residents of a village near the munitions depot site were evacuated, while people were also advised to keep their windows shut. Electricity was cut off in several villages.

With further explosions still possible, the military had not yet been able to enter the depot area.

Reserve Bank of India (RBI) and Bank of Japan (BOJ) has signed a bilateral swap arrangement (BSA) on Monday. The BSA was signed by BOJ governor Masaaki Shirakawa and RBI governor Yaga Venugopal Reddy in Basel, Switzerland. It will pave a way for swapping local currencies against the US dollar for up to $3 billion. The agreement will also sort out problem of short-term liquidity and strengthen existing international financial arrangements

The agreement was come into effect on Sunday (June 29). Both Japan and India can now swap Yen and rupee against the US dollar up to $3 billion. They will hold biannual consultations on economic and financial conditions of each country with the BSA in effect.

India recorded a deficit of Rs 104 core in its current (January-March) account in the country’s balance of payments during the fourth quarter of a fiscal due to the rise in oil prices. India's current account deficit in 2007-08 rose by 77% to touch $17.4 billion, accounting for 1.5% of GDP in 2007-08. The oil import bill increased by 34.6% to $76.9 billion in 2007-08 due to surge in crude price. However, non-oil imports recorded a growth of 30.6% only.